VC/ Legals<p>TS = Term Sheet, a sheet summarizing the commercials of an investment agreement contract<p>SHA = Shareholders Agreement, the contract defining the relationship amongst the company and the shareholders and amongst the shareholders<p>CT = Cap Table or Capitalization Table, a document (usually a spreadsheet) that states who owns what % of shares in the company<p>ROFR = Right of First Refusal, in case existing shares of the company are sold, shareholders with a ROFR will have the option to buy those shares, ratably, before they are offered to new investors<p>Liq Pref = Liquidation Preference, a right attached to a specific class of shares that regulates the order of priority in case of a liquiditiy event (simply put: who gets the $ first in case there is not enough to make everybody happy)<p>Pre = Pre Money or Pre Money Valuation, one key term of the term sheet, it is the valuation of the company that determines the price per share for a capital increase<p>Post =Post Money or Post Money Valuation, Post = Pre + capital injection<p>LPs = Limited Partners, these are the investors of the VC funds<p>GPs = General Partners, there are commonly known as Partners and are the manager of the VC fund, deciding the allocation of the investments
General Financials<p>KPIs = Key Performance Indicators, a set of numbers/ ratios displaying the performance of a company<p>GMV = Gross Merchandise Value, total monetary value of transactions taking place on a marketplace<p>MRR = Monthly Recurring Revenues, the kind of revenues that SaaS and subscription based companies are earning<p>ARR = Annual Recurring Revenues, MRRx12<p>EBITDA = Earnings Before Interests Taxes Depreciation Amortization<p>EBIT = Earnings Before Interests Taxes<p>COGS = Cost Of Goods Sold<p>LTM = Last Twelve Months<p>YTD = Year To Date<p>MoM = Month on Month<p>YoY = Year on Year<p>H1/H2 =1st Half of the year/ 2nd Half of the year<p>Q1/Q2…= 1st Quarter of the year/ 2nd Quarter of the year…<p>FY = Fiscal Year<p>CAGR = Compound Annual Growth Rate<p>CAPEX = Capital Expenditure, expenditures required by a company to improve operations, it can be for example the purchase of machinery and properties<p>IPO = Initial Public Offering, when a company offers its shares to the public markets and gets listed<p>VC Financials<p>ROI = Return On Investment, Return/ Investment -1<p>Money Multiple = Shares Value now/ Total Investment<p>Valuation Multiple = Company Valuation now / Company
Valuation at the time of initial investment<p>IRR = Internal Rate of Return<p>EV = Enterprise Value, the equity value + debt value (net of cash)<p>NAV = Net Asset Value, the total valuation of the assets in a fund<p>AUM = Assets Under Management, basically how many $ a VC fund is managing<p>MF = Management Fees, a fixed % of the AUM through which VCs finance the fixed costs of running a VC fund